Recent Asian Natural Rubber price gains may prove optimistic

Rubber Aug 29, 2013 No Comments

RubberBenchmark Rubber prices in Tokyo have rallied 21 percent since the 2013 low in late June and were around 275.6 yen $2.84 per kilogram in Asian trade on Wednesday. The main contract on the Shanghai Futures Exchange has also rallied from its low in early July, gaining 21 percent to trade around 20,730 yuan $3,387 a tonne.

The worst may be over for Asian natural rubber prices as stronger economic growth in China and globally boosts demand for vehicle tires, but there are still risks to calling for a sustained price rally.

However, this is still almost 18 percent below the year’s peak, reached in early February, after which rubber prices trended downward amid ample stockpiles in major importers Japan and China, slower economic growth and the end of efforts by top exports Thailand, Malaysia and Indonesia to limit supplies.

via Asian natural rubber price gains may prove optimistic: Clyde Russell | Reuters

Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

Leave a Reply

Your email address will not be published. Required fields are marked *